Wednesday, May 3, 2017

2 co-ops question ERC chief’s renewal of power contracts

Two electric cooperatives in
Mindanao have questioned the orders of embattled Energy Regulatory Commission
(ERC) chair Jose Vicente Salazar extending their respective contracts with a
power generator without their knowledge.

Interestingly, Salazar approved the
renewal of five purchase agreements just three days after FDC filed its
petition on Jan. 23.

Besides the power supply deals with
Doreco and Laneco, Salazar also granted the extension of FDC’s contracts with
South Cotabato II Electric Cooperative Inc., Misamis Occidental II Electric
Cooperative Inc. and Bukidnon Second Electric Cooperative Inc.

Doreco said it was unaware that FDC
had asked the ERC to renew their agreement with the same electricity rates when
the two parties signed the deal in April 2015.

“We respectfully manifest to the
honorable commission that Laneco was not made aware of the filing of the
manifestation. Laneco’s receipt… of the electronic copy of the order… came as a
surprise,” Doreco said in its Feb. 10 letter, a copy of which was obtained by
the Inquirer on Tuesday.

Moreover, it said it informed FDC as
early as Oct. 13, 2016, or more than two months before the deal’s expiry, that
it was not interested in renewing the agreement.

In its letter to Salazar, Doreco
said: “At the onset, it should be noted that Doreco was not joined by FDC
Misamis in the filing of the manifestation… and in fact, it was unaware
thereof.”

A senior ERC official, who asked not
to be named for fear of reprisal from Salazar, said the ERC chair arbitrarily
approved the extension of the deals without the consent of the four other ERC
commissioners.

“That has been Salazar’s policy
since he became the ERC chair. He made many decisions and resolutions on his
own, bypassing the authority of the entire commission and its members,” the
official said.

In five separate orders dated Jan.
26, Salazar said the electric cooperatives “may continue to draw power from FDC
Misamis during the extended period.”

Salazar, a former justice
undersecretary, has been under fire since the tragic death of ERC